Bargains I've Found: September 2008 Archives

What's Wrong With It: Everything is seventies vintage. The property seems physically solid, but it's not pretty right now. Needs new paint, new carpet, and some other minor updating.

Why It Hasn't Sold: Most folks won't look beyond how it looks now to how it could look with not very much expense.

Who it's Not Appropriate For: People who need a turn key property.

Pro:

Selling Points: Decent size back yard and family room. Walk across the street to get to elementary school, two blocks for middle school and three for high school - and all three are sought after schools. DIning room looks out into front garden.

Who Should be Interested: People looking for a place where a little bit of sweat will build a lot of equity.

Why it's a Bargain: Cheapest house in a good neighborhood, and what needs to be done won't take that much.

Financial:

What I think I can get it for: $305,000.

Investment potential: If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $305,000 the property would be worth approximately $500,000. If you held it those ten years before selling, you would net about $230,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1800 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $200,000 ahead of the renter, after the expenses of selling.

To learn more: Agree that you'll use me as a buyer's agent if you buy it. If you don't like it or don't buy it, no obligation is incurred. If you're not working with someone who will go out and find properties like this, maybe you should consider working with me instead!

What's Wrong With It: Dividers between kitchen, living room and dining room. You get some traffic noise outside. Facade needs paint.

Why It Hasn't Sold: It's in a small hidden neighborhood.

Who it's Not Appropriate For: Fixers and Flippers, because there's really not much left to do.

Pro:

Selling Points: There's lots of trees on the street, and it has a good view. Large lot with back yard deck and garden - perfect for parties. Detached two car garage, semi-circular driveway with enough room for at least four cars. Inside is beautiful, too. Hardwood floors and lots of light!

Who Should be Interested: This would be a great place to live! Good schools for families!

Why it's a Bargain: I would expect a property like this to have an asking price at least forty thousand dollars higher.

Financial:

What I think I can get it for: $410,000.

Investment potential: If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $410,000 the property would be worth approximately $670,000. If you held it those ten years before selling, you would net about $320,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2100 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $220,000 ahead of the renter, after the expenses of selling.

To learn more: Agree that you'll use me as a buyer's agent if you buy it. If you don't like it or don't buy it, no obligation is incurred. If you're not working with someone who will go out and find properties like this, maybe you should consider working with me instead!